Which of the following has been an unexpected effect of offshoring?
A)Companies that use offshoring find that their travel costs decrease.
B)Energy costs for the company rise, increasing the benefits of offshoring.
C)Wages in the foreign countries rise, reducing the expected cost savings.
D)It helps reduce wage stagnation of workers in the home country.
E)It has reversed the trend of increased automation.

Question

Quizplus · Accepted Answer

One of the unexpected effects of offshoring has been the rise in wages in the foreign countries where the work is being outsourced to. This can reduce the cost savings that companies expect to achieve through offshoring, leading to the need to reevaluate the strategy.

Which of the Following Has Been an Unexpected Effect of Offshoring